The government proposes a tax on flowers in order to boost its revenue. If the elasticity of demand is 1.3 and the elasticity of supply is 0.7:
a. Consumers will bear the majority of the burden of the tax
b. Producers will bear the majority of the burden of the tax.
c. Consumers and producers will bear equal shares of the burden of the tax.
d. It does not tell us enough to reveal whether consumers or producers will bear most of the burden of the tax.
b
Economics
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Game theory was developed in the 1940s by John von Neuman, a mathematician, and an economist named
A) John Nash. B) Oskar Morgenstern. C) Milton Friedman. D) John Maynard Keynes.
Economics
Consumers fare worse under a monopoly than under perfect competition because a lower quantity is sold at a higher price in the monopoly market than in a perfectly competitive market
a. True b. False Indicate whether the statement is true or false
Economics